A recent study highlights how promoting female entrepreneurship can significantly boost women’s workforce participation and drive economic growth. Female-owned businesses tend to employ more women and offer higher wages compared to male-owned firms, making them critical to improving gender equity in the workplace.
Globally, women own less than a fifth of businesses, and in India, their contribution to GDP is only 17%, far below the global average. While women represent about 14% of entrepreneurs in India, most run microenterprises, often as solo ventures, limiting their economic impact. Barriers like household responsibilities, limited access to transportation, and societal norms further restrict women’s ability to work or expand their businesses.
A new paper by researchers Gaurav Chiplunkar and Pinelopi Goldberg shows that addressing these obstacles could unlock significant economic gains. Policies that encourage female entrepreneurship and labor force participation—such as improved childcare, safer transportation, and business-friendly reforms—can help create a ripple effect, allowing women-owned businesses to flourish and employ more women.
The study also stresses that entrepreneurship policies are a faster, more effective solution than trying to change long-standing social norms. As noted by experts like Ashwini Deshpande of Ashoka University, boosting women’s access to salaried work with job contracts and social security benefits is a crucial step for economic empowerment.
With research indicating that India could achieve 8% GDP growth by 2030 if women make up more than half of the new workforce, empowering female entrepreneurs offers a promising path forward.
